Correlation Between Byline Bancorp and BBVA Banco
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and BBVA Banco at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Byline Bancorp and BBVA Banco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and BBVA Banco Frances, you can compare the effects of market volatilities on Byline Bancorp and BBVA Banco and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Byline Bancorp with a short position of BBVA Banco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and BBVA Banco.
Diversification Opportunities for Byline Bancorp and BBVA Banco
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Byline and BBVA is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and BBVA Banco Frances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBVA Banco Frances and Byline Bancorp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Byline Bancorp are associated (or correlated) with BBVA Banco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBVA Banco Frances has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and BBVA Banco go up and down completely randomly.
Pair Corralation between Byline Bancorp and BBVA Banco
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 1.22 times less return on investment than BBVA Banco. In addition to that, Byline Bancorp is 1.19 times more volatile than BBVA Banco Frances. It trades about 0.18 of its total potential returns per unit of risk. BBVA Banco Frances is currently generating about 0.27 per unit of volatility. If you would invest 1,381 in BBVA Banco Frances on August 27, 2024 and sell it today you would earn a total of 269.00 from holding BBVA Banco Frances or generate 19.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byline Bancorp vs. BBVA Banco Frances
Performance |
| Timeline |
| Byline Bancorp |
| BBVA Banco Frances |
Byline Bancorp and BBVA Banco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and BBVA Banco
The main advantage of trading using opposite Byline Bancorp and BBVA Banco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, BBVA Banco can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BBVA Banco will offset losses from the drop in BBVA Banco's long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| BBVA Banco vs. Banco Macro SA | BBVA Banco vs. Grupo Financiero Galicia | BBVA Banco vs. Banco Bradesco SA | BBVA Banco vs. Itau Unibanco Banco |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |